Martin Kenny (Sligo-Leitrim, Sinn Fein) | Oireachtas source

I welcome Fianna Fáil's motion. Insurance is something that affects everyone in the State, especially people with small businesses. I read through the Minister's speech and while it is strong on rhetoric on what the Government is trying to do, it does not go to the core of the problem and address the issues. The problems we have in the insurance sector are a symptom of the broken economic model for domestic business in this country. There is not a focus on recognising that the domestic sector needs help. That goes to the core of everything we talk about in all our financial services and our banking policy is very similar.

The banks in this country failed and everything was done to maintain them and to bring them back on-board to make sure that the pillar banks became strong again. That was done at the expense of the ordinary people and many business people who lost their business and who were stressed out in recent years trying to pay exorbitant interest rates. We have the highest interest rates in Europe for business and domestic banking yet the banks get the money from the same place as every other bank in Europe, often at less than 0.5%, namely, the European Central Bank. That is an example of the problem and we have the very same issue when it comes to insurance.

Reference is made to insurance fraud in the motion and previous speakers referred to it also. I accept it is an issue, but it has always been a factor. However, the reason we have had the exorbitant increases in insurance premia in recent years is because of the economic crash. During the boom times the insurance companies invested all their reserves in various bonds around the world but those bonds failed. When that happened the insurance companies lost their money and now look who is paying the price - it is the ordinary business people we see in the Gallery and around the country, and the ordinary car insurers, namely, the young people aged 18 or 19 who are trying to get insured and are being given quotes of up to €5,000 and €6,000 in order to be able to go to work. The problem we have is that ultimately everything is done to protect the big corporate interests at the expense of the small players. That needs to be reversed. That is the action the Government must take to address the issue.

Many business people take a big risk. They put themselves on the line in order to try to do something because they have a vision of creating something better for themselves and creating a better future for the community in which they live. All of us, regardless of where live in this country, have an obligation to try to make the place around us better. The business community, in particular those involved in small and medium enterprises are at the coalface of doing that and great credit is due to them for the work they do. However, they are not supported. The broken economic model to which I referred earlier is at the very core of that. No emphasis is being put on sustaining the small business community in the long term.

There are five cattle marts at the moment in County Leitrim. The mart managers tell me that in many cases the insurance they pay has almost trebled in recent years. That is no accident. It is not because anyone had an accident in the mart. It is not because anything happened. It is because the insurance companies are trying to get back the money they lost on the bonds, gambling on international markets in the past ten years. The Government must recognise that reality and examine it.

Banks, insurance companies and the big players are using their power to grind down ordinary people. The only chance people have is for the Government to stand up for them. The job of the Government is to step in to be the arbitrator of last resort. The Government needs to fulfil that role but, unfortunately, it is not doing it. This evening's motion is very welcome because it calls on the Government to intervene. We cannot hide behind excuses such as fraud or anything else. Such reasons will always be there. The corporate sector will always find a reason to increase prices and increase profits. What is happening is profiteering on the back of ordinary small businesses around the country.

My colleague, Deputy Quinlivan, referred to the Bill introduced by Deputy Pearse Doherty, the Consumer Insurance Contracts Bill, which the Government accepted and which would help in this and in many other instances but is waiting for a money message from the Cabinet. When Bills are approved by this House they go to the Cabinet and if there is a cost on the Exchequer only the Cabinet can approve them. That measure is being used all the time to hold up good Bills that could move things forward. If the Bill were enacted it would ensure that insurance companies would not be able to hide in the way they currently can. It would ensure that they would have to be at least a little bit more honest than they are at present, which would be a considerable advance on the current position. We all know people who have had various insurance claims in their businesses relating to fires or other issues but the insurance companies use every possible excuse not to pay. However, it does not work the other way as people do not have an excuse not to pay them. That is the difference. We need to ensure the Government steps up to the mark and becomes the arbitrator of last resort and does something for the ordinary business people and the people of the country.

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